Australia's flagship carrier Qantas has reached a 95 million Australian dollar ($100 million) settlement with engine maker Rolls-Royce over last year's mid-air disintegration of a superjumbo engine, which temporarily forced the grounding of its entire fleet of A380s

Qantas CEO Alan Joyce said the terms of the agreement are confidential, but that the settlement's profit and loss impact would amount to a 95 million Australian dollar ($100 million) boost to the airline's bottom line.

Joyce said the settlement marks an end to the legal proceedings Qantas launched against Rolls-Royce in the Federal Court of Australia in December.

In November, a Rolls-Royce Trent 900 engine on a Qantas A380 disintegrated shortly after takeoff from Singapore, forcing the plane to make an emergency landing.

The engine explosion was the most significant safety issue an A380 had ever faced since it began passenger flights in 2007, and prompted intense scrutiny of Rolls-Royce engines. The jet landed safely, but the incident forced the temporary grounding of 20 A380s with Trent 900 engines, operated by Qantas, Singapore Airlines and Germany's Lufthansa.

The Australian Transport Safety Bureau's interim report on the incident said a manufacturing defect in an oil pipe deep within one of the engines led to an oil leak, which sparked a fire. The fire caused a disintegration of one of the engine's giant turbine discs, sending pieces of it shooting through the plane's wing.

The fallout from the engine emergency cost Rolls-Royce 56 million pounds ($91 million) in the 2010 financial year, a spokesman for the London-based company said in a statement. Rolls-Royce said it expects "some small additional costs" in the 2011 financial year.

"Qantas is a valued customer and we are pleased this matter has been resolved," the statement said.

The settlement will help Qantas recover from the millions it lost following the incident. The airline was forced to temporarily ground its entire fleet of A380s for a series of inspections, and Joyce said the plane damaged by the explosion won't return to service until February.